Wednesday, March 25, 2015

Many seniors are looking for a great way to improve their financial
situation. Retirement or semi-retirement can be difficult due to the
need to live on a fixed income. Some may have been unable to save enough
in their working years, or their accounts may have been hit hard by
stock market fluctuations. Still others are feeling the effects of
inflation and the rising costs of medical care and general living
expenses.

If you are like many other seniors, you may not have a huge
cash reserve available in your bank account, but you may have a sizable
nest egg in your home. The fact is that you can tap into that equity
without selling your home or taking on a mortgage payment when you apply
for a reverse mortgage.

What Is A Reverse Mortgage?

A reverse mortgage is a unique type of loan that utilizes the current
equity in your home and allows you to make regular withdrawals from
that equity. Rather than you making a payment to a lender, the lender
pays the funds to you. The terms of the mortgage are structured so that
you will never owe more money on the reverse mortgage than the home is
worth. When you decide to sell it or when your estate is being settled,
the home’s value will pay off the mortgage. This essentially gives you
the opportunity to keep living in your home and to use the equity now
when you need it most.

Is This The Right Option For You?

A reverse mortgage is not suitable for everyone, but it may be
suitable for you. You can easily learn more about the amount of payments
that you could receive on a monthly basis if you were to apply for a
reverse mortgage, and you can consider how these payments would ease
your financial concerns. This loan will decrease the amount of equity
you have in your home over time. Therefore, if you have plans to sell
your home later and use the equity for other retirement plans, you
should carefully consider if the reduction in equity is feasible for
your situation and goals.
One of the best steps that you can take is to learn more about this
option. You will not know if a reverse mortgage is suitable for your
financial needs and long-term goals unless you take the step of speaking
with a loan agent.

Tuesday, March 17, 2015

When you initially start shopping for a home mortgage, you may be
drawn to advertisements for ultra-low interest rates. These may be rates
that seem too good to be true, and you may gladly contact the lender or
mortgage company to complete your loan application. However, the
unfortunate truth is that all too often, mortgage applicants are
unpleasantly surprised and even disheartened to learn that they do not
qualify for the advertised interest rate. By learning more about the
factors that influence your interest rate, you may be able to structure
you loan in a more advantageous way.

Your Credit Rating
One of the most important factors that influence an interest rate is
your credit score. Lenders have different credit score requirements, but
most have a tiered rating system. Those with excellent credit scores
qualify for the best interest rate, and good credit scores may qualify
for a slightly higher interest rate. Because of this, you may consider
learning more about your credit score and taking time to correct any
errors that may be resulting in a lower score.

The Amount Of Your Down Payment
In addition, the amount of your down payment will also play a role in
your interest rate. The desired down payment may vary from lender to
lender, but as a rule of thumb, the best home mortgage interest rates
are given to those who have at least 20 to 30 percent of funds available
to put down on the property, and this does not include subordinate or
secondary financing. If you are applying for a higher loan-to-value
loan, you may expect a higher interest rate.

The Total Loan Amount Requested
In addition, the total loan amount will also influence the rate.
There are different loan programs available, but one of the biggest
differences in residential loans is for very large loan amounts. The
qualification for a jumbo loan will vary for different markets, but
these loans qualify for different rates than conventional loans with a
smaller loan amount.

While you may be able to use advertised interest rates to get a fair
idea about the rate you may qualify for, the only real way to determine
your mortgage rate will be to apply for a loan and to get pre-qualified.
You can contact a mortgage lender today to request more information
about today’s rates and to begin your pre-qualification process.

Tuesday, March 10, 2015

If you pay attention to your credit
rating, you may be well aware that a single late payment reflected on your
credit report can result in a decline in your scores.

In some cases, the decline can be
rather significant, and you will have to work hard to make regular payments
over a period of time to show that you remain creditworthy and to rebuild your
credit score.

It is far better to avoid late
payments altogether than to deal with the stress and ramifications of a late
payment on your credit report. If you have already missed the due date on your
mortgage loan, you may be wondering what you can do to prevent this late
payment from showing up on your credit report.

Contact Your Mortgage Company
Immediately

Initially, contact your mortgage
company to make payment arrangements and to discuss the situation. In some
cases, a mortgage company may be willing to work with you on structuring a new
arrangement for the payment to be made or you may even have a surplus in your
escrow account that could be applied toward the payment.

You can also determine when they
will report your late payment to the credit bureaus and how much time you have
before you absolutely need to make the payment to avoid credit ramifications.

Make Your Payment Before The Next
One Is Due

Generally, lenders will report late
payments when they are more than 30 days late. While you may be assessed a late
fee after the initial grace period has expired, you may not have technical late
payment in terms of what credit reporting bureaus consider to be late.
Generally, if you make your payment before the next mortgage payment is due,
your late payment will not show up as a late payment with the bureaus. However,
you do want to verify this with your mortgage company and work with them to
bring your account current.

A late payment on a mortgage can
have a substantial and negative impact on your credit rating, and it can take
months or even years to restore your scores to their previous level. Rather
than go through the effort to try to improve your score after the fact, it is
best to avoid the late payment altogether. While you may have already missed a
payment and may be required to pay a late fee, it may not be too late to avoid
having this event reflected on your credit report.

Contact your lender today to learn
more about your options and to make your payment.

Wednesday, March 4, 2015

There are several factors that will help you determine the value of
your home when you want to sell it. Location, condition, layout,
upgrades, and events relating to your home are all important when
selling your home.It’s All About Location
Anyone in real estate will tell you location, location, location is
the first thing to consider when buying real estate. If your home is on a
busy street, it’s going to be harder to sell unless someone is looking
for that exact location.

If a buyer is looking to have a business inside the home, then having
more exposure could be important. However, for a family, the most
sought after location is in a cul-de-sac or dead-end street where
traffic is kept to a minimum.

Your Home’s Condition Is Important
The home you are selling must be in excellent condition to ensure you
get top dollar. Buyers are primarily looking for a home that is in
move-in condition. If it needs painting, new flooring, a new roof, or
new plumbing, it isn’t as desirable as a home that doesn’t need any
work. Newer homes typically are in better condition than older homes,
unless they have been well-maintained.

Your Home’s Layout
Is your floorplan functional? Most buyers prefer homes with open
floorplans and ample kitchens, living areas, and bathrooms. Closets are
also important as everyone needs storage space. The number of bedrooms a
home has can also be important. Two bedrooms aren’t as popular or
functional as three or four bedrooms. It’s also nice to have a flex room
that can be a study, exercise room, or a formal dining room if need be.
If a smaller home is well-designed, it can be easier to resale than a
larger home.

Upgrades And Renovations
If you have an older home, but have upgraded the kitchen and
bathrooms, then your home will be easier to sell. Updated appliances can
also be a big plus when selling a home.

Natural Disasters And Other Events
If your home has been flooded, been through a fire, or damaged from
wind or a storm, then that may cause the value to be less. If a buyer
happens to talk to a neighbor who tells them a negative story, that may
spook a buyer and cause them to look elsewhere.

Tuesday, March 3, 2015

If your personal budget is similar to many other people’s budgets,
your home mortgage payment is by
far the largest expense that you pay
for each month. In fact, this payment may easily account for 20 or 25
percent or more of your take-home income. Understandably, you may be
focused on trying to pay this expense off early. By focusing on this
payment, you can build equity and may be able to achieve financial
security more quickly. You simply have to find a way to put aside a bit
of extra cash regularly so that you can make extra payments, and there
are few easy ways that you can consider.

Use Your Tax Refund

First, if you are one of the many taxpayers who receives a refund
each year, consider setting aside some or all of this refund to reduce
your outstanding mortgage balance. Some taxpayers may have such a
sizable refund that it can account for two or more mortgage payments
each year. However, even a few hundred dollars extra put toward your
principal balance will save you a considerable amount of money in
interest charges over time and will have a wonderful effect on your
balance.

Earmark Your Annual Bonus

If you are lucky enough to receive an annual bonus each year, you may
consider using this to pay down your principal balance. While you may
usually spend this money on extra holiday gifts or just add it to your
spending cash, you can benefit more substantially when you contribute it
to your effort to pay down your mortgage.

Use An Automated Draft To Create a Fund

Another great idea that will work well for all individuals is to
create an automated draft from your checking account each month. You may
set aside the funds in a special account, and you can make an extra
mortgage payment from this account periodically. Another idea is to set
up auto payments for your mortgage that are higher than the amount due.
For example, you may establish auto payments that are $50 or $100 more
than your scheduled payments.

Paying off your mortgage earlier can be a life changing event for
you. Simply imagine how different your life would be if you were not
responsible for this payment each month. The fact is that this could be
your reality sooner than you think if you follow these tips. For the
best results, apply two or even all three tips to your efforts.